Anthony Milewski: Copper to see All Time Highs in this Cycle
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Anthony tells us that Cobalt 27 has just acquired 1.75% of smelter royalties on all future production at Dumont. The “Dumont Project” contains the world’s largest undeveloped, permitted and construction-ready reserve of nickel and cobalt. The company is located in business-friendly Quebec, Canada. They are also looking into other streaming deals and exploration projects with royalty potential.
If you read the news, there is growing unrest in the Congo. Many companies are looking for Cobalt, and there simply aren’t very many plays outside of that region. Over the next year, you will likely see off-take deals with producers and battery makers, and that could drive the market.
He thinks every consumer of cobalt is likely in discussion with producers. The new source of demand appears to be material. Most of Wall Street is expecting 15% of all vehicles will be electric, and that estimate could be low. Therefore it makes sense to begin to acquire the material today.
Tesla continues to work on various projects related to grid storage. The case for vanadium and lead-acid is also strong. There is potential for multiple winners in the grid storage space.
Copper is going to see all-time highs in this cycle and will trade higher than it did in the supercycle. 16% of global demand for copper will come from electric vehicles.
Nickel is different than other metals in that there are two forms of it. You have the low-grade nickel pig iron which is incompatible with lithium-ion batteries. Dumont will be producing the high-grade nickel.